The South African Reserve Bank (SARB) says that it believes that inflation is likely to continue to stay in the midpoint of the target range, at 4.5%. In a best-case scenario it could decline to average 3% if the rand strengthens.
However, it said that even in a worst-case scenario, where prices rise faster than expected, it still believed that average inflation would be below 5% for the next three years.
This data was revealed in the SARB’s latest Money Policy Review.
It also said that it expected economic growth to be 1.1% this year, rising to 1.8% next year.